Last week, Poland’s lower house of parliament (Sejm) passed a government-backed bill called the Crypto-Asset Market Act. The legislation implements the European Union’s crypto laws, namely the Markets in Crypto Assets Regulation (MiCA). Under these rules, the Polish Financial Supervision Authority (KNF) is required to regulate and approve all digital asset firms. One of the challenges of MiCA is that each EU member state can, and has, required varying degrees of compliance under the rules.

In a dramatic twist, the opposition Law and Justice (PIS) party has pushed forward legislation demanding a complete ban on crypto. Apparently, the bill was driven by the failure of the Polish crypto exchange Zondacrypto, in which users…